Post Category → Risk Management
Demystifying Bollinger Bands
Demystifying bollinger bands and why traders should always combine the Bollinger Bands with other technical indicators to improve market timing.
Continue readingApplied Statistics for Futures Markets
Calculating probability distribution for an asset class in excel. How to tutorial.
Continue readingOptimum Asset Allocation using Correlation
The concept of diversification is based on the concept that a trader can reduce his risk exposure by entering several positions at the same time. The success of a traders portfolio is therefore based on reducing risk rather than maximizing returns.
Continue readingFollowing the Big Guys with the Cot Report
The COT Report is the single most important report issued by the CFTC revealing internal market dynamics. It’s some kind of sentiment indicator. The data collected on a weekly basis contains market positions of the largest futures traders. Let’s see how we can use the report to accurately predict market turns.
Continue readingSpot Major Market Moves
In today’s uncertain markets, traders who want to spot major market moves and protect themselves against large losses should consider using spread trading. Spreads are one of the most powerful market indicators. The two major ways looking at them are the price premium structure and the strengthening/weakening of the spread.
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